Small Arizona County Alleges Ex-Treasurer Embezzled $39 Million

The county is suing its former treasurer in an effort to recover a large amount of funds that were allegedly stolen.

SANTA CRUZ COUNTY, Ariz. — Santa Cruz County is taking legal action against its ex-treasurer, Elizabeth Gutfahr, accusing her of embezzling over $39 million.

On Friday, county supervisors announced the filing of a lawsuit in Pima County Court aimed at recovering the allegedly misappropriated funds.

The lawsuit, obtained by KVOA, details accusations against Gutfahr, alleging that she diverted money from the county’s savings into corporate entities and personal bank accounts she controlled. The court documents claim Gutfahr spent a decade using county funds for her luxurious lifestyle.

To conceal the embezzlement, Gutfahr allegedly fabricated investment statements and timed the wire transfers to avoid detection, as per the county’s lawsuit.

The county supervisors stated, “The County is continuing its comprehensive internal review with the assistance of experienced outside legal and forensic accounting professionals, including a full forensic financial investigation of the accounts controlled by the County Treasurer.”

Officials became suspicious in April after identifying 11 fraudulent transactions amounting to $375,000, which triggered an FBI investigation.

Gutfahr resigned from her position on April 12, citing health and personal reasons.

Despite the alleged financial misconduct, county officials emphasized their commitment to maintaining the day-to-day operations of entities dependent on county funding.